sam`s club® business revolving credit application

SAM’S CLUB® DISCOVER® BUSINESS
PLUS
MEMBERS
Earn Up To
2
%
CASH
BACK
Accepted At Over 4 Million
Locations Where You See
One Card Convenience –
Serves As Your Membership Card
AND
Earn Cash Back On Up To
$1 Million In Purchases
See inside for details.
Accepted At Over
4 Million Locations
Where You See
#5113 10/05
Apply Today!
EARN CASH BACK At
Locations
Over 4 Million Locations
Where You
You See
See
Where
SAM’S CLUB® DISCOVER® Business lets you earn up to
2% Cash Back on every purchase.*
SECURITY
VALUE
• Earn Up To 2% Cash Back On Every Purchase
You Make At SAM’S CLUB AND Everywhere
Discover® Network Cards Are Accepted –
• Zero Fraud Liability – If your card is lost or stolen,
you will not be responsible for unauthorized purchases.
• Protected With Your Photo
SAM’S CLUB Business PlusSM Members earn up to 2%,
and SAM’S CLUB Business Members earn up to 1%.
• IN-CLUB Financing Promotions – Every Day
• No Annual Credit Card Fee
CONVENIENCE
• Accepted At Over 4 Million Locations –
Where you see the Discover® Network sign.
• Cash Advances From Any ATM That
Displays The Discover® Network Sign*
• One-Card Convenience –
Serves as your Membership card.
SM
NOT ANOT
SAM’S
PLUSMEMBER?
MEMBER YET?
YETCLUB
A PLUS
Upgrade To A SAM’S CLUB PlusSM
Membership And Get These
Exclusive Features:
• Earn Up To 2% Cash Back With
SAM’S CLUB® DISCOVER®**
• Complimentary Access To SAM'S CLUB
HealthAllies® Health Discount Program –
A $105 Value
• Save Over $500 On Other Member Services
• Itemized Monthly Billing Statements
• Online Account Management
At samsclubdiscover.com
Check the box on the attached
application to upgrade today!
Apply today at the Member Services Desk!
*See attached terms for details. Not available on SAM’S CLUB Business Credit Card.
**Subject to credit approval.
SAM’S CLUB® BUSINESS REVOLVING CREDIT APPLICATION
Omitting important information may delay processing.
Upgrade my Membership to Plus, so I can receive up to 2% cash back.
1. TELL US ABOUT YOUR BUSINESS
SAM’S CLUB Business Membership Number
Taxpayer ID # (Required)
Company Full Legal Name*
Business Address (Street Name and Number Required)
Suite/Building/Floor # City
State
ZIP
City
State
ZIP
Billing Address (If Different)
Business Phone #
(
)
Fax #
(
Ext.
Resale/Tax License #
Passcode Requested
Doing Business as or Subsidiary of (Leave Blank if Not Available)
Billing Representative
Business Established Year
Monthly Estimated Spend
$
Type of Business:
Corporation
Issuing State
(Must be Numeric)
Dun & Bradstreet #
Partnership
Expiration Date
)
E-mail Address
Number of Employees
Company Contact
Proprietorship
Purchase Orders Required?
Yes
No
Other
*Limited to 21 Characters
GE Capital Financial Inc. will first consider you for a SAM’S CLUB® DISCOVER® Business.
If you do not qualify for a SAM’S CLUB® DISCOVER® Business, you will be considered for a SAM’S CLUB® Business Credit Card only.
I do not want to be considered for SAM’S CLUB® DISCOVER® Business which allows me to earn up to 2% Cash Back.
Consider me for the SAM’S CLUB Business Credit Card only.
2. AUTHORIZED REPRESENTATIVE’S SIGNATURE
NOTICE TO BUYER: (1) DO NOT SIGN THIS APPLICATION BEFORE YOU READ IT OR IF ANY SPACES INTENDED FOR THE AGREED TERMS ARE LEFT BLANK. (2) YOU ARE
ENTITLED TO A COMPLETELY FILLED IN COPY OF THE GOVERNING CREDIT AGREEMENT. (3) YOU MAY AT ANY TIME PAY THE TOTAL BALANCE UNDER THE AGREEMENT. By
signing below on behalf of your business, you represent that your business is a valid business entity; that all purchases made on this account, if approved, WILL BE FOR
PURPOSES OTHER THAN PERSONAL, FAMILY, OR HOUSEHOLD USE, and that you are an authorized representative of the business with authority to enter into contractual agreements. You understand, that if approved for a SAM’S CLUB® DISCOVER® Business, we may assign interest rates depending on your business’ creditworthiness as determined by
us. On behalf of the business, you certify that all information provided in this application is complete and accurate, you agree to be bound by the terms of the governing credit
agreement and you authorize us to obtain information about you personally (whether or not you have personally guaranteed the account) and your business from credit
reporting agencies and other sources we deem appropriate in considering this application and subsequently for purposes of updates, renewals, or extensions of credit granted
as a result of this application or in reviewing or collecting the account. You also understand that credit on this account, once approved, will be extended by GE Capital Financial
Inc. (“GECF”), and that there is no binding contract between us until GECF approves and accepts this application. You have read and agree to the Key Terms below.
I agree that my annual SAM’S CLUB membership fees will be automatically billed to my Account and my acceptance of this Account constitutes my agreement to such billing.
Federal law requires us to obtain, verify, and record information that identifies you when you open an account.
We will use your name, address, taxpayer ID #, and other information for this purpose.
SIGN
HERE
X
AUTHORIZED REPRESENTATIVE’S SIGNATURE
NAME (PRINTED)
-
SOCIAL SECURITY #
(
)
PHONE #
-
/
/
DATE OF BIRTH
(MM/DD/YYYY)
3. PERSONAL GUARANTOR INFORMATION (NOT REQUIRED IF PRE-APPROVED)
Should you give us your personal guaranty? Yes, if your company . . .
✓ Has less than $5MM in annual sales or revenues, or ✓ Is less than 2 years old, or ✓ Has fewer than 10 employees, or ✓ Is a partnership or proprietorship.
Giving us your personal guaranty will speed the process of approving your application especially if you have a small or young company.
If we can’t grant you credit on the basis of your company’s information, you may be able to receive credit if you agree to be personally responsible for paying for your
company’s account.
Last Name
First Name
Mailing Address (Include Street Number and Name if P.O. Box is Used)
Home Phone #
(
)
Business Phone #
(
)
Initial
City
Title
State
Social Security #
Date of Birth
ZIP
Country
Annual Income From All Sources*
$
THE PERSONAL GUARANTOR MAY BE LIABLE FOR ANY UNPAID AMOUNTS AND MUST BE ONE OF THE FOLLOWING (✓ One) :
President/Chairman
VP
Owner/Sole Proprietor
General Partner
E-mail Address
*Alimony, child support or separate maintenance income need not be disclosed unless relied upon for credit.
PERSONAL GUARANTY: IN CONSIDERATION OF GE CAPITAL FINANCIAL INC. (“GECF”) FINANCING PURCHASES BY BUYER, THE UNDERSIGNED GUARANTOR (“GUARANTOR”) HEREBY AGREES TO
UNCONDITIONALLY, ABSOLUTELY AND IRREVOCABLY PERSONALLY GUARANTEE PAYMENT OF ALL AMOUNTS NOW OR HEREAFTER DUE UNDER, AND THE PERFORMANCE UNDER THE TERMS OF THE
CREDIT AGREEMENT, AS AMENDED, RESTATED OR REPLACED FROM TIME TO TIME (“AGREEMENT”) FOR THE SAM’S CLUB® DISCOVER® BUSINESS OR SAM’S CLUB®√ BUSINESS CREDIT CARD CREDIT
AGREEMENT, DEPENDING ON WHICH TYPE OF ACCOUNT THE BUYER IS APPROVED FOR, AND FURTHER AGREES TO PAY THE TOTAL BALANCE NOW OR HEREAFTER DUE ON THE ACCOUNT OPENED
PURSUANT TO THE AGREEMENT UPON DEMAND, WITHOUT REQUIRING GECF TO PROCEED FIRST TO ENFORCE PAYMENT AGAINST THE BUYER OR ANY OTHER PERSON ALSO LIABLE ON THIS ACCOUNT,
IN THE EVENT OF ANY DEFAULT UNDER THE AGREEMENT THAT GOVERNS THE ACCOUNT. THE GUARANTOR HEREBY WAIVES ANY NOTICES REGARDING THE AGREEMENT OR THIS GUARANTY, AND
AGREES THAT THIS GUARANTY SHALL REMAIN IN EFFECT UNTIL THE AGREEMENT HAS TERMINATED AND ALL AMOUNTS DUE THEREUNDER SHALL HAVE BEEN PAID IN FULL. THE GUARANTOR AGREES
THAT THE GUARANTY SHALL REMAIN IN EFFECT EVEN IF GECF CHANGES THE TERMS OF THE AGREEMENT IN ANY WAY AND THE OBLIGATIONS GUARANTEED HEREUNDER WILL INCLUDE SUCH
AMENDMENTS, INCLUDING INCREASING RATES, FEES AND/OR CREDIT LIMITS, ADDING LOCATIONS WHERE THE ACCOUNT MAY BE USED OR ISSUING A REPLACEMENT CREDIT CARD FOR THE
ACCOUNT. THE GUARANTOR AGREES THAT GECF MAY REPORT THE UNDERSIGNED’S LIABILITY FOR AND THE STATUS OF THE ACCOUNT TO CREDIT BUREAUS AND OTHERS WHO MAY LAWFULLY RECEIVE
SUCH INFORMATION. THE GUARANTOR AGREES THAT PERSONAL CREDIT HISTORY OF THE UNDERSIGNED GUARANTOR MAY BE USED IN MAKING CREDIT DECISIONS AND CONSUMER REPORTS
ON THE GUARANTOR MAY BE OBTAINED FROM TIME TO TIME. DIRECT INQUIRIES OF EMPLOYERS AND BUSINESSES WHERE THE GUARANTOR MAINTAINS ACCOUNTS MAY ALSO BE MADE.
Personal Guarantor’s Signature
Date
X _______________________________________________________________
4. CREDIT AUTHORIZED BUYERS** (MUST BE ADD-ON CARDHOLDERS ON THE BUSINESS MEMBERSHIP)
Authorized Buyer # 1 Name (Should be person that signed above) Membership #
Last 4 digits of Soc Sec #
______________________________
____________________________
Authorized Buyer # 2 Name
Membership #
______________________________
____________________________
Authorized Buyer # 3 Name
Membership #
______________________________
____________________________
Passcode
Last 4 digits of Soc Sec #
Passcode
Last 4 digits of Soc Sec #
Passcode
(Will be the same as #2)
** For Other Than Personal, Family or Household Use.
FOR CLUB USE ONLY
Select Type of State Issued Photo ID
Driver’s License
State ID
ID # _________________________________________
Verify Member’s Major Credit Card Type
Credit Line
MasterCard
Date
Visa
American Express
State: —
— (2 character state abbreviation)
Expiration/Issue Date ______________________________
Record the first six digits
Discover/Novus
Credit Card/Loan
of the account number __ __ __ __ __ __
Card Issued
PLEASE RETURN TO THE NEAREST SAM’S CLUB. DO NOT MAIL.
Application Code
5329
C94R (4/05) 5329-BRC-DUAL REV 10/05 [70911]
THE KEY CREDIT TERMS
®
®
SAM’S CLUB DISCOVER BUSINESS
Annual Percentage Rate (APR) for Purchases
Account Type 1:
Account Type 2:
Account Type 3:
10.87%
16.87%
SAM’S CLUB® BUSINESS CREDIT CARD
Annual Percentage Rate (APR) for Purchases
PR Fixed:
All Other States Variable:
18.00%
19.87%
Other APRs
Delinquency Rate:*
25.87%
Cash APR:
Account Type 1: Account Type 2: Account Type 3:
13.87%
19.87%
22.87%
Variable Rate Information
The Annual Percentage Rate for Purchases may vary and will equal the
prime rate plus (i) 4.12%, but not less than 9.87% for Account Type
1; (ii) 10.12%, but not less than 15.87% for Account Type 2; or
(iii) 13.12%, but not less than 18.87 % for Account Type 3. The Annual
Percentage Rate for Cash Advances may vary and will equal (A) the
prime rate plus 7.12%, but not less than 12.87% for Account Type 1,
(B) the prime rate plus 13.12%, but not less than 18.87% for Account
Type 2, or (C) the prime rate plus 16.12%, but not less than 21.87%
for Account Type 3. The Delinquency Rate may vary and will equal the
prime rate plus 19.12%, but not less than 24.99%.
The “prime rate” for a billing period is the highest bank prime loan rate
as published in The Wall Street Journal in its Money Rates section on
any business day of the three calendar months preceding the first day
of the billing period.
Grace Period for the Repayment of the Balance for Purchases
25 days if no previous balance or full payment is made;
otherwise none.
Method of Computing the Balance for Purchases
Average Daily Balance (including New Purchases)
Minimum Finance Charge
$1.00 ($0 in PR)
Transaction Fee for Cash Advances
The greater of $5.00 or 3.0% of the amount of the Cash Advance
Transaction Fee for Convenience Checks or Balance Transfers
The greater of $5.00 or 3.0% of the amount of the Cash Advance,
but no more than $50.00
Late Payment Fee: The amount of the Late Payment Fee is $29. ($0 in PR).
However, if your delinquent Minimum Payment was calculated on a
New Balance of less than $100, the Late Payment Fee is $10.
Returned Check Fee: $25. ($0 in PR). Overlimit Fee: $25. ($0 in PR).
*The Delinquency Rate will apply if you fail to make minimum payment
to us when due, you exceed any credit limit, or you make a payment to
that is not honored by your bank. Once in effect, if you are not late with
any minimum payment and do not exceed any credit limit for six consecutive billing periods, the rate for purchases will be the prime rate plus
13.12%, but not less than 18.87% and the rate for cash advances will
be the prime rate plus 16.12%, but not less than 21.87%.
18.30%
Other APRs
None
Variable Rate Information
Except in PR, your periodic rate and corresponding Annual Percentage
Rate will vary. The APR applied in any billing period will be equal
to the total of (i) the highest bank prime loan rate as published in
The Wall Street Journal in its Money Rates section (“prime rate”) on
the last business day of the calendar month preceding the first day of
such billing period and (ii) 11.55%.
Grace Period for the Repayment of the Balance for Purchases
26 days, if there is no previous balance or the balance is fully paid.
Otherwise, none.
Method of Computing the Balance for Purchases
Average Daily Balance (including New Purchases)
Minimum Finance Charge
$1.00 ($0 in PR)
Transaction Fee for Cash Advances
Not Applicable
Transaction Fee for Convenience Checks or Balance Transfers
Not Applicable
Late Payment Fee: The amount of the Late Payment Fee is $29. ($0 in
PR). However, if your delinquent Minimum Payment was calculated on
a New Balance of less than $100, the Late Payment Fee is $10.
Returned Check Fee: $20 ($0 in PR).
The information about the costs of the Cards described above is accurate as of October 1, 2005. This information may have changed after that date. To find out what may have changed on the SAM’S CLUB ® DISCOVER® Business,
please write to us at P.O. Box 981284, El Paso, TX 79998-1284; to find out what may have changed on the SAM’S CLUB® Business Credit Card, write to us at P.O. Box 981064, El Paso, TX 79998-1064. The terms of the Agreement
may be changed by us as provided in the Agreement. All accounts are owned, and credit is extended, by GE Capital Financial Inc.
SAM’S CLUB® DISCOVER® BUSINESS
ACCOUNT TYPE
___________________________
Credit Limit
$ ___________________
Current Variable Purchase APR*
___ ___ . ___ ___%
Current Purchase Periodic Rate*
. __ __ __ __ __ %
Current Variable Cash APR*
___ ___ . ___ ___%
Current Cash Periodic Rate*
. __ __ __ __ __ %
Current Variable Deliquency APR*
___ ___ . ___ ___%
Current Delinquency Period Rate*
. __ __ __ __ __ %
SAM’S CLUB® BUSINESS ACCOUNT
ACCOUNT TYPE
___________________________
Credit Limit
$ ___________________
Current Variable Purchase APR*
___ ___ . ___ ___%
Current Purchase Periodic Rate*
. __ __ __ __ __ %
*May vary as provided in your Agreement
SAM’S CLUB® DISCOVER® BUSINESS
HOW TO EARN CASH BACK
Subject to the Terms set forth below, SAM’S CLUB business cardholders are eligible to receive a
rebate on purchases made with the SAM’S CLUB® DISCOVER.® Rebates are not available on
SAM’S CLUB® Business Credit Card.
1. DETERMINATION OF CASH REBATE PERCENTAGE. The amount of your Year-to-Date Purchases
will be used to determine the percentage of each Purchase eligible for rebate. The greater the amount of
Year-to-Date Purchases, the higher the rebate percentage. However, Year-to-Date Purchases over
$1,000,000 will not be eligible for a rebate. SAM’S CLUB Business Plus members will earn a higher rebate
percentage than members and non-members.
2. REBATE TIERS. The percentage of each Purchase eligible for rebate is as follows:
SAM’S CLUB BUSINESS PLUS MEMBERS
Amount of Year-to-Date Purchases
Percentage of Purchase
(Including the current Purchase)
Eligible for Rebate
Up to $1,500
0.25%
$1,500.01 – $3,000
0.50%
$3,000.01 – $5,000
1.00%
$5,000.01 – $10,000
1.75%
$10,000.01 – $1,000,000
2.00%
SAM’S CLUB BUSINESS MEMBERS AND NON-MEMBERS
Amount of Year-to-Date Purchases
Percentage of Purchase
(Including the current Purchase)
Eligible for Rebate
Up to $1,500
0.25%
$1,500.01 – $3,000
0.50%
$3,000.01 – $1,000,000
1.00%
If a Purchase causes Year-to-Date Purchases to span multiple rebate tiers, the applicable rebate percentage for each spanned tier will apply to that portion of the Purchase falling within such tier. For example, if a Cardholder who is a SAM’S CLUB Business member already having Year-to-Date Purchases totaling $2,000, makes an additional $2,000 Purchase, $1,000 of that additional purchase would be eligible
for a 0.50% rebate and the remaining $1,000 would be eligible for a 1.00% rebate.
3. ISSUANCE OF REBATE CHECKS. After each Purchase, a Cardholder will accrue a potential rebate based
on the applicable percentage. Unless the Cardholder’s account is delinquent, rebate checks will be issued
each February for the rebate accrued during the previous Card Year. No rebate checks will be issued for
amounts less than $1.00. Rebate checks may be cashed only at a SAM’S CLUB. Cardholders who are not
members of SAM’S CLUB may cash their rebate checks by obtaining a one-day pass at SAM’S CLUB.
4. OTHER CONDITIONS. A Cardholder will forfeit all accrued, unpaid rebates if the Cardholder’s account is
closed for any reason (other than as a result of a lost or stolen card, in which case all accrued rebates will
be applied to the replacement card). Rebate checks expire on the expiration date printed on the front of the
checks. These Terms may be changed or discontinued at any time without notice. Changes may include,
among other things, modifying the amount of Purchases required to qualify for the various potential rebate
tiers, changing the rebate percentages, imposing additional restrictions, or terminating the program.
5. DEFINITIONS. As used herein, the following terms will have the following meanings:
“Card” means the SAM’S CLUB® DISCOVER ®.
“Cardholders” means the person or entity to whom the Card was issued.
“Card Year” means a calendar year.
“Purchase” means a purchase of merchandise or services using the SAM’S CLUB® DISCOVER®.
Purchase does not include any other type of Card transaction, including cash advances, Quick Cash, convenience checks or balance transfers.
“Terms” means these terms for how to earn cash back.
“Year-to-Date Purchases” means the amount, at the time each Purchase is made, of net Card purchases (total Card purchases minus returns and adjustments) made during the Card Year. At the beginning of each Card Year, the amount of Year-to-Date Purchases will be reset to zero.
INITIAL DISCLOSURE STATEMENT FOR BOTH
THE SAM’S CLUB® DISCOVER® BUSINESS
AND THE SAM’S CLUB® CREDIT CARD
The following are initial disclosure statements. If you are approved for a SAM’S CLUB ® DISCOVER®
Business or a SAM’S CLUB® Business Credit Card, a complete credit card agreement (“Agreement”)
governing your SAM’S CLUB ® DISCOVER® Business or SAM’S CLUB® Business Credit Card
(“Account”) will be sent to you. The SAM’S CLUB ® DISCOVER® Business and SAM’S CLUB® Business
Credit Card are issued by GE Capital Financial Inc. (“Bank”). In these disclosure statements, “we”, “us”,
and “our” refer to the Bank; “you” and “your” refers to all persons who we approve to use the Account;
and “Card” refers to your SAM’S CLUB ® DISCOVER® Business or SAM’S CLUB® Business Credit
Card. You may use your SAM’S CLUB ® DISCOVER® Business or SAM’S CLUB® Business Credit Card
to purchase goods or services (“Purchases”). You may also use your SAM’S CLUB® DISCOVER® to
obtain cash loans at any institution that accepts the SAM’S CLUB® DISCOVER‚® including any
Automated Teller Machines (“Cash Advances”). We may, from time to time, allow you to transfer balances from other credit card accounts to your SAM’S CLUB® DISCOVER® (“Balance Transfer”), or to
access credit on the Account by writing a convenience check (“Convenience Checks”). The following
transactions are treated as Cash Advances for the SAM’S CLUB® DISCOVER®: Convenience Checks,
drafts, money orders, cashier’s checks, traveler’s checks, electronic or wire transfers, foreign currency
or other in-bank transactions, tax payments, lottery tickets or other legalized gambling transactions,
court costs, bail bonds, person-to-person payments, fines, and other cash-like transactions. Except
as otherwise expressly provided in the Agreement for SAM’S CLUB® DISCOVER® or any applicable
offer, a Balance Transfer will be treated as a Purchase.
INITIAL DISCLOSURES FOR
SAM’S CLUB® DISCOVER® BUSINESS
PERIODIC FINANCE CHARGES. We calculate the periodic Finance Charge separately for Purchases, Cash
Advances and Special Payment Plans. The Annual Percentage Rate may sometimes be referred to as “APR”.
A. The periodic Finance Charge for a billing period is calculated by applying the applicable daily periodic
rate (“Periodic Rate”) to the Account balance subject to periodic Finance Charges for each day in the
billing period, and adding together all of those daily Finance Charge amounts. A minimum FINANCE
CHARGE of $1.00 (none in PR) will be imposed for each billing period in which your Account is
subject to a periodic Finance Charge.
B. The Periodic Rate for your Purchase balance is the purchase standard rate (“Purchase Standard Rate”),
unless the Delinquency Rate applies as described below. Except as provided below, the Purchase
Standard Rate for a billing period is either: (A) the greater of: (i) the Prime Rate plus 4.12%, times 1/365;
or (ii) .02705% (APR 9.87%) for Account Type 1; or (B) the greater of (i) the Prime Rate plus
10.12%, times 1/365; or (ii) .04348% (APR 15.87%) for Account Type 2; or (C) the greater of
(i) the Prime Rate plus 13.12%, times 1/365; or (ii) .05170% (APR 18.87%) for Account Type 3.
The prime rate for a billing period is the highest bank prime loan rate as published in The Wall Street
Journal in its Money Rates section on any business day of the three calendar months preceding the first
day of the billing period (“Prime Rate”). Based on a Prime Rate of 6.75% as of October 1, 2005, the
Purchase Standard Rate for Account Type 1 was .02979% (APR 10.87%); the Purchase Standard
Rate for Account Type 2 was .04622% (APR 16.87%); and the Purchase Standard Rate for
Account Type 3 was .05444% (APR 19.87%).
C. The Periodic Rate for your Cash Advance balance is the cash standard rate (“Cash Standard Rate”),
unless the Delinquency Rate applies as described below. Except as provided below, the Cash Standard
Rate for a billing period is either: (A) the greater of: (i) the Prime Rate plus 7.12%, times 1/365; or
(ii) .03527% (APR 12.87%) for Account Type 1; or (B) the greater of (i) the Prime Rate plus
13.12%, times 1/365; or (ii) .05170% (APR 18.87%) for Account Type 2; or (C) the greater of
(i) the Prime Rate plus 16.12%, times 1/365; or (ii) .05992% (APR 21.87%) for Account Type 3.
Based on a Prime Rate of 6.75% as of October 1, 2005, the Cash Standard Rate under this formula was
.03800% (APR 13.87%) for Account Type 1; the Cash Standard Rate was .05444% (APR
19.87%) for Account Type 2; and the Cash Standard Rate was .06266% (APR 22.87%) for
Account Type 3.
D. The Periodic Rate for all Account balances will be increased if you fail to make a minimum payment
to us when due, you exceed your Credit Limit or Cash Advance Limit, or you make a payment to us that
is not honored by your bank. In such circumstances, we will increase your Periodic Rates (including any
promotional rates) on all Account balances to a delinquency rate (“Delinquency Rate”) equal to the greater
of: (i) the Prime Rate plus 19.12%, times 1/365; or (ii) .06847% (APR 24.99%). Based on a Prime
Rate of 6.75% as of October 1, 2005, the Delinquency Rate was .07088% (APR 25.87%). The
Delinquency Rate that will apply will take effect as of the first day of the next billing period. Once the
Delinquency Rate applies, if you make any required Total Minimum Payment by the Payment Due Date
in six consecutive billing periods and do not exceed your Credit Limit or Cash Advance Limit during such
six month period, effective on the first day of the next billing period, we will apply a Purchase Standard
Rate to your Purchase balances equal to the greater of: (i) the Prime Rate plus 13.12%, times 1/365; or
(ii) .05170% (APR 18.87%) and a Cash Standard Rate to your Cash Advance balances equal to
the greater of: (i) the Prime Rate plus 16.12%, times 1/365; or (ii) .05992% (APR 21.87%). Based
on a Prime Rate of 6.75% as of October 1, 2005, the Purchase Standard Rate under this formula was
.05444% (APR 19.87%) and the Cash Standard Rate under this formula was .06266% (APR
22.87%).
E. The Periodic Rate and corresponding APRs may vary. If the Prime Rate increases, the Periodic Rates
and corresponding APRs may increase, and as a result the periodic Finance Charge, Total Minimum
Payment, and number of payments also may increase. Any change in the Periodic Rates will apply to your
entire Account balance (unless otherwise specified in any applicable promotional offer that provides for
different terms for that promotion). A change in the Prime Rate will take effect on the first day of the billing
period after the change. We may select a new interest rate index if the Prime Rate is not available.
BALANCE SUBJECT TO PERIODIC FINANCE CHARGE. The balance subject to a periodic Finance Charge
is calculated separately for Purchases, Cash Advances and Special Payment Plans.
A. The Purchase balance subject to a periodic Finance Charge is the Purchase Daily Balance of the
Account. However, Purchases are not included in the Purchase balance subject to a periodic Finance
Charge for a billing period if there is no previous balance on your Account at the beginning of the billing
period (“Previous Balance”), or the sum of your payments and credits on your Account received during
the billing period is at least equal to the Previous Balance.
B. To determine the Purchase balance subject to a periodic Finance Charge, we take the prior day’s
Purchase balance of your Account, which includes any unpaid periodic Finance Charge on your Purchase
balance and add any new Purchases, including any Balance Transfers and other debits charged to your
Account that day, and subtract any payments and other credits applied to your Purchase balance that day.
Each day we also add any periodic Finance Charges on your Purchase balance and other Finance Charges
and fees (other than Transaction Fees for Cash Advances), including any debt cancellation fees, assessed
that day on your Account. This gives us the “Purchase Daily Balance” of the Account. Any Purchase Daily
Balance of less than zero will be treated as zero.
C. The Cash Advance balance subject to a periodic Finance Charge is the Cash Advance Daily Balance of
the Account. To determine the Cash Advance balance subject to a periodic Finance Charge, we take the
prior day’s Cash Advance Balance of your Account, which includes any unpaid periodic Finance Charges
on your Cash Advance Balance, and add any new Cash Advances, Transaction Fees for Cash Advances
and periodic Finance Charges on your Cash Advance Balance for that day and subtract any payments and
other credits applied to your Cash Advance Balance that day. This gives us the “Cash Advance Daily
Balance” of the Account. Any Cash Advance Daily Balance of less than zero will be treated as zero.
WHEN PERIODIC FINANCE CHARGES BEGIN TO ACCRUE.
A. Purchases. If there is a Previous Balance on your statement, Purchases and other related charges will
begin to accrue periodic Finance Charges on the later of the transaction date or the first day of the billing
period in which the Purchase is posted to your Account. However, if there is no Previous Balance shown
on your Account, or if the sum of all payments and credits posted to your Account by the Payment Due
Date is at least equal to the New Balance on your statement, Purchase Balances will not incur any Finance
Charges on the next billing statement. To avoid periodic Finance Charges on Purchases on your next statement, you must pay your entire New Balance by the payment due date shown on your statement.
B. Cash Advances. Cash Advances, Transaction Fees for Cash Advances and other related charges will
accrue a periodic Finance Charge from the later of the transaction date or the first day of the billing period
in which the Cash Advance is posted to your Account. There is no period within which you can avoid
Finance Charges on Cash Advances.
PAYMENTS.
A. You must pay at least the Total Minimum Payment by 5:00 p.m. on the Payment Due Date shown on
the Statement. You may pay more than the Total Minimum Payment at any time. Your Total Minimum
Payment will be the sum of: (a) the greater of (i) $15.00, or (ii) 1/12 of the new balance (“New Balance”)
shown on your statement, or (iii) the sum of the Finance Charges, the late fee, the overlimit fee imposed
during the current billing period, and 1.0% of your New Balance; plus (b) any past due amounts and any
amount by which the New Balance exceeds your Credit Limit. The Total Minimum Payment will be
rounded up to the next whole dollar. However, the Total Minimum Payment is the New Balance if the New
Balance is less than $15.00.
B. We reserve the right to select the method by which payments and credits are allocated to your
Account in our sole discretion. The payment allocation method that we use may result in higher Finance
Charges on your Account, depending on the types of transactions you make (such as promotional or nonpromotional purchases), and the timing and amount of your payments. From time to time we may offer
you the following types of Special Payment Plans: (1) reduced APR promotions that apply to Purchases
and/or Cash Advances made anywhere you use your Account (“World-Wide Promotions”); and (2) promotions that apply solely to Purchases made at a SAM’S CLUB club (“SAM’S CLUB Promotions”).
SAM’S CLUB Promotions may include deferred interest promotions where interest accrues during the
promotional period but is not added to your Account balance if the promotional balance is paid in full by
the expiration date of the promotion (“SAM’S CLUB Deferred Interest Promotions”).
Unless we notify you otherwise, your payments will be allocated in the following order:
1. Finance charges and fees
2. World-Wide Promotions, in order of lowest to highest APR
3. All Balances not subject to any promotion, in order of lowest to highest APR
4. SAM’S CLUB Store Promotions (except as noted below)
If you have a SAM’S CLUB Deferred Interest Promotion, in the month in which that promotion is to
expire, payments equal to or greater than the SAM’S CLUB Deferred Interest Promotion balance will be
allocated to that balance before payments are allocated to finance charges and fees. Because we allocate
payments to lower APR balances first for both World-Wide Promotions and balances not subject to any
promotion, your Account will incur higher Finance Charges than if we had allocated to higher APR balances first. In addition, if you have a balance that has a higher APR than any World-Wide Promotion balance you may have, you will not receive the full benefit of the reduced APR of the World-Wide Promotion.
If you have any questions about the allocation of your payment, please call the customer service phone
number located on your billing statement.
C. You authorize us to obtain payment electronically for any check or other instrument that you send to
us by initiating an ACH (electronic) debit to the account from which your check or instrument is drawn.
Your check or instrument will not be returned to you by us or your bank.
ADDITIONAL FEES. You agree to pay the following fees:
A. A Late Payment Fee of $29, if we have not received your Total Minimum Payment by the Payment Due
Date shown on your Statement. If your New Balance at the time your delinquent Total Minimum Payment was
calculated was less $100, the Late Payment Fee will be $10. No Late Payment Fee will be imposed in PR.
B. An Overlimit Fee of $25.00 (none in PR) for each billing period in which your New Balance as shown
on your Statement exceeds your Credit Limit. We may assess an Overlimit Fee even if we authorize the
transactions on your Account that caused you to exceed your Credit Limit, or if you exceed your Credit
Limit as a result of unpaid Finance Charges or other fees.
C. A Returned Check Fee of $25.00 (none in PR) if any check or other instrument sent to us, or any electronic payment authorization you provide us for payment on your Account, is not honored upon first presentment even if the check, instrument, or electronic payment authorization is later honored.
D. A Transaction Fee for each Cash Advance that posts to your Account will be charged. This fee will be
a FINANCE CHARGE equal to the greater of $5.00 or 3% of the amount of the Cash Advance. For
Automated Teller Machine (“ATM”) Cash Advances, the amount of the Cash Advance may include a surcharge that the ATM owner imposes.
E. A Transaction Fee for each Convenience Check or Balance Transfer that posts to your Account will be
charged. This fee will be a FINANCE CHARGE equal to the greater of $5.00 or 3% of the amount
of the Convenience Check or Balance Transfer, but no more than $50.00.
TRANSACTION MADE IN FOREIGN CURRENCY. If a transaction is made in a foreign currency, the
Discover® Network will convert the transaction into a U.S. dollar amount in accordance with its operating regulations and conversion procedures in effect at the time the transaction is processed. Currently
these regulations and procedures (which are subject to change by the Discover® Network) provide that
the currency conversion rate Discover® Network uses is no greater than the highest (1) interbank conversion rate identified by Discover® Network on the processing date; or (2) government-mandated rate,
in effect on the processing date or the previous business day. The currency conversion rate in effect on
the processing date may differ from the rate in effect on the transaction date or the posting date.
INITIAL DISCLOSURES FOR THE
SAM’S CLUB® BUSINESS CREDIT CARD
FINANCE CHARGES. When your Account has a balance subject to finance charge (as described below),
we will assess a Finance Charge calculated by applying a daily (monthly in PR) periodic rate (“periodic
rate”) to that balance. Except in PR, your periodic rate and corresponding Annual Percentage Rate will vary.
The periodic rate applied in any billing period will be equal to 1/365 of the total of (i) the highest bank prime
loan rate as published in The Wall Street Journal in its Money Rates section (“prime rate”) on the last business day of the calendar month preceding the first day of such billing period and (ii) 11.55%. If the prime
rate increases, the periodic rate and corresponding Annual Percentage Rate may increase, and as a result
the Finance Charge, the Minimum Payment and the number of payments may also increase. Any new periodic rate will apply to your entire Account balance. The periodic rate under the above formula as of
October 1, 2005 was .05014% and the corresponding ANNUAL PERCENTAGE RATE was 18.30%.
In PR, the periodic rate is fixed and equal to 1.500% (corresponding ANNUAL PERCENTAGE
RATE 18.00%). A minimum FINANCE CHARGE of $1.00 will be assessed for any billing period
in which a Finance Charge is due. There is no Minimum Finance Charge in PR.
BALANCE SUBJECT TO FINANCE CHARGE. There will be no balance subject to Finance Charge for a billing
period if there is no Previous Balance on your Account for the billing period or the sum of your payments
and credits on your Account during the billing period is at least equal to the Previous Balance. In all states
except PR, each day during the billing period, we will figure a “Daily Balance” on your Account. The Daily
Balance is determined by taking the beginning balance for that day, which includes any unpaid Finance
Charges, adding any new Purchases and other debits assessed that day, and subtracting any payments
made and credits issued on that day. This gives us the Daily Balance. Any Daily Balance less than zero will
be treated as zero. We then multiply the Daily Balance by the applicable periodic rate and add that daily
Finance Charge to the balance to determine that day’s closing balance, which will be the beginning balance for the following day. At the end of the billing period, we add up the results of the daily Finance Charge
calculations to get the total Finance Charge for the billing period. Late Payment Fees and Returned Check
Fees, if any, are not included in the Daily Balance. In PR, we figure the balance subject to Finance Charge
using the “Average Daily Balance” calculation method. Each day we take the beginning balance of your
Account, and subtract any payments, other credits applied to that balance that day, and any unpaid
Finance Charges. We also add any new Purchases and other charges assessed that day. This gives us the
Daily Balance. Then we add up all the Daily Balances in the billing period and divide the total by the number of days in the billing period. This gives us the Average Daily Balance. Any Average Daily Balance of
less than zero will be treated as zero. Late Payment Fees, Returned Check Fees and insurance premiums,
if any, are not included in the Daily Balance.
WHEN FINANCE CHARGES BEGIN TO ACCRUE. If there is no Previous Balance for the billing period or the
sum of your payments and credits for the billing period is at least equal to the Previous Balance, new
Purchases and other charges in that billing period will begin to accrue a Finance Charge as of the first day
of the next billing period if a Finance Charge is imposed in the next billing period. If there is a Previous
Balance for the billing period and the sum of your payments and credits for a billing period is not at least
equal to that Previous Balance, new Purchases and other charges will begin to accrue a Finance Charge from
the later of the date of the transaction or the first day of the billing period in which the transaction is posted
to your Account.
PAYMENTS. You agree to pay a Minimum Monthly Payment in an amount rounded to the next highest dollar) which is the larger of: (1) 1/12 of the highest balance of your Account since it last had a
$0 balance, or (2) $50. In addition, your Minimum Monthly Payment will also include any past due
amounts. When your balance is less than $50, the Minimum Monthly Payment will be equal to the
entire balance. Except as stated, the amount of your Minimum Monthly Payment will remain the same.
You may at any time pay your entire balance in full or more than the Minimum Monthly Payment.
Payment will be credited as of the date of receipt at the address on the payment stub of your monthly
billing statement if received by 5:00 p.m. Eastern Time Monday through Friday (otherwise next business day); but if payment is not in U.S. dollars, not accompanied by the payment stub or not received
at that location, credit may be delayed up to five business days. All written communications concerning disputed amounts, including any check or other payment instrument that (a) indicates that
the payment constitutes “payment in full” or is tendered as full satisfaction of a disputed amount,
or (b) is tendered with other conditions or limitations, must be mailed or delivered to us at the
address for billing inquiries shown on the Statement, not the Payment Address. We reserve the
right to select the method by which payments and credits are allocated to your Account in our sole
discretion. The payment allocation method that we use may result in higher amounts of Finance
Charges on your Account, depending on the types of transactions you make (such as promotional or
nonpromotional purchases), and the timing and amount of your payments. If you have any questions
about the allocation of your payment or would prefer to choose a different payment allocation option
we offer, please call customer service at 1-800-964-1917.
FEES. You agree to pay the following fees.
A. A Late Payment Fee of $29 if we do not receive your Minimum Payment by the Payment Due Date shown
on your statement. If your delinquent Minimum Payment was calculated on a New Balance of less than
$100, the Late Payment Fee is $10. We do not impose a Late Payment Fee in PR.
B. A Returned Check Fee of $20 if any check or other instrument sent to us, or any electronic payment
authorization you provide us, in payment on your Account is not honored upon first presentment even if
the check, instrument or electronic authorization is later honored. We do not impose a Returned Check
Fee in PR.
SECURITY INTEREST. To secure your obligation to us, we retain a security interest under the Uniform
Commercial Code in each item of merchandise you purchase (except in NY on any purchase under $200)
until that item is paid in full (in NY, not to exceed five years from the date the purchase is posted to your
account). This security interest permits us, under certain circumstances provided for by law, to take back,
or repossess, the merchandise if you do not pay for it under the terms of this Agreement. In NY, no security interest will be retained or acquired under this Agreement in any motor vehicle or in any goods likely
to be affixed to a motor vehicle or real property so as to become party thereof.
this Account. You also understand that we will be unable to determine whether any given purchase conforms to this “Business Purposes” section of this Agreement. You agree that a breach by you of this
“Business Purposes” section will not affect our right to enforce your promise to pay for the credit
extended to you, including related charges, or to use any remedy legally available to us even if that remedy would not have been available had the Account been established as a consumer credit Account.
CHANGE IN TERMS. We may, at any time and subject to applicable law, change, add or delete provisions
of the Agreement (“Terms Change”) or terminate your Account. Unless prohibited by applicable law, we
may apply any Terms Change to any outstanding or future balances on your Account.
DISCLOSURES FOR BOTH THE
SAM’S CLUB® DISCOVER® BUSINESS
AND THE SAM’S CLUB® BUSINESS CREDIT CARD
BUSINESS PURPOSES. You agree not to use this Account to purchase goods and/or services for personal,
family, or household purposes. In this connection, you understand that your agreement not to use this
Account for personal, family or household purposes means that important duties imposed upon us, and
important rights conferred upon a consumer, pursuant to certain federal or state laws, will not apply to
C94R (4/05) 5329-BRC-DUAL REV 10/05 [70911]